Harry Dent Jr. (Not Harvey Dent) on Goldseek radio

One of his points was that Europe has taken fiscal austerity and it’s working for them. I disagree based on history and fundementals. The United States has never cared about what other nations are doin…g and we have always done things our way. Also, if he wants to cite what other countries are doing, he should look at Japan who are trying to inflate their currency which is the opposite of europe.

The second point that I disagree with is that he says that the market could crash within two months and then we will begin to deleverage.

While I agree that it could happen, I don’t think this will be a significant crash like DOW 6 thou. It would more be DOW 9 thou, maybe 8. The reason why the market won’t completely crash is because there are safety nets in place to make sure that it doesn’t. This guy has not read FinReg. Half of the bill is dedicated to having a senatorial(pretty sure it’s senate finance commitee) team along with the board of govenors in place in the event of another financial crisis. In other words they all get together and have to decide in no less than 48 hours whether or not a certain bank is at risk of failing and whether or not to save it. I’ll give you a guess as to what their answer would be.